Direct Investment

Direct Investment


Successful business expansion through acquisition involves a substantial amount of creativity and diligence to ensure the proper processes have been performed. Unlike a joint venture where a new entity is created with the contribution of assets by two or more separate entities, business acquisition involves the acquisition of tangible and intangible assets, liabilities and business of an existing company. Therefore, a thorough understanding of the existing company background and business practices is required. Foreign investors should look to avoid buying into the target company's liabilities and other problems, and equally the target company should ensure that the investors are reliable.

Our role is to interact with both the buyer and seller to achieve the synergy and benefits characteristic of the asset acquisition. In that context, we would carefully weigh various factors on both sides:


    Benefits to Target Company
        Notifiable transactions
        Corporate restructurings
        Share forward splits
        Share consolidations / reverse splits
        Privatizations
        Share repurchases
        Adoption of new share option scheme
    Benefits to Target Investor
        Availability of financial statements
        Immediate return on investment
        Established goodwill and brand name
        Established suppliers and distributors
        Proven products and sales network
        Experienced management and staff
        Eliminates time cost and energy of starting a new business
AEA Asia Group Limited follows a unique and rigorous screening process in order to match the right investment funding with the right target company, and maximize the benefits to both the target company and investor. The key steps include:

    1. Project Assessment
        Why buy a business rather than start a new one?     What are the expected results of the combined business?

    2. Identification of Target Company / Investor
        What characteristics are expected of the target company, and of the target investor?

    3. Selection of Investment Strategy
        How much cash is required to be raised?     Where in the business and when can funds be accessed?

    4. Valuation and Pricing
        How is the value of the business assessed?     Valuation methods to be used?

    5. Negotiation of Deal Structure
        Striking the best possible deal for the client on terms fair to both parties.

    6. Deal Execution
        Involving all relevant parties and bringing the deal to a successful completion.